14 Benefits of Passive Income (Jobs VS Passive Income)
Why everyone chases for passive income? What are the benefits of passive income?
Earning passive income has put you on an advantage over the other guys who are making money by working for others. If you want to own a healthy and wealthy lifestyle, you must not making money depend only on your 9-5 jobs. Instead you want to setup a passive income system.
Well, why said so generating passive income has put you on an advantage over the other guys who are working for others? This is because passive income has many benefits which typical 9-5 jobs are never be able to provide. And all these benefits not only allow you to be richer and more freedom, but also giving you an opportunity to retire young and retire rich.
So, what are the benefits of passive income?
14 benefits of passive income
Jobs have boss
If you have a 9-5 job, then you'll have a boss. Every activity you do in a company needs to be responsible for your boss. Therefore, mostly you'll be limited to execute any task because you have to execute the task according and aligning with your boss favorite.
You're not allowed to do things in your own terms, hence your creativity can be strangled. In addition, you have to follow company's rules if you're working for others.
In contrast, if you're doing passive income businesses, then you're your own boss. You can do anything without others' limitation. You can decide what time you work, what kind of events you want to setup, etc. You can bring your creativity into play, don't have to be limited by others. In conclusion, you set your own rules.
Jobs do mediocre work
In the environment of a company, you'll notice that people always do mediocre work. This is because people don't want to do more work. For instance, if there's a task needs 2 hours to finish, people will do it for 5 hours or less or more. Their total working time is 8 hours per day, if they finish their task in 2 hours, then the rest of the time will left nothing to do. So they'll stare blankly for 6 hours.
Or inversely, their boss will give them other tasks to do. Therefore, if they finish their work early, they will have more works to do. They thought if they finish their tasks fast, they'll have their own time to do own things but this is not going to happen. Therefore, they don't finish their tasks fast even thought they could, they just want to be look busy. That's why in a company environment will make people to do mediocre work.
For your own passive income business, you'll do your best. Because it's totally different than a typical 9-5 job. After you finish what you should be done, you can do your own stuffs instead of staying at your workplace until 5pm.
Furthermore, this is your own business. No matter how hardworking you're for your office job, your boss is the one who gets the most benefits. You'll do your best if it's your own business.
Jobs work with people who do mediocre work
In the environment of a company, you can be nurtured to do mediocre work. And all the colleagues around you will also do mediocre work. If you always work with mediocre people who do mediocre work, you'll become a mediocre person. Inversely, if you want to be a successful person, you must stay with successful people.
If you do your own passive income business, you can work alone without other people. You can also choose partners to work with you instead of one-man-show. You have the right to choose which people to work with you, so you can avoid to work with mediocre people. You can have your best outcome for your works.
Jobs need pay higher taxes
I'm not sure how much taxes need to pay for the 9-5 jobs income in a particular country. Every country has different tax laws. However, there's one thing can be sured, that is, your own business don't pay that much taxes as working for others. Because parts of your salary will be contributed to taxes for your boss and government.
In contrast, you can have lower taxes if the income is from your own business. You can ask professional accountant to help you to cut down the taxes that you can avoid. So you'll not pay that much taxes instead contribute the money to other uses.
Jobs can't go for vacation
You can't go for vacation if you're working in a company, normally you have to work for weekdays. So your free time would be only weekends. You may get a few weeks per year for vacation time, but you're not able to travel for a month or two.
However, if you're earning passive income, you can travel anywhere even though you don't work during the trip. In case if you wish to work, you can also work through a laptop during your trip. You can travel whenever you want because you don't have to work for money and you decide your own work time.
Jobs can't work anywhere
Normally working for others in a company will be fixed to do your work at your office place. That's a place called cubicle which provides you 50-80 square feet that should have enough room for a desk and a chair. You gonna work at the cubicle everyday because your boss wants to watch you work.
In contrast, your passive income business doesn't necessarily need a fixed workplace. You can work at beach either work in Starbucks. It's up to you. If you want to work at the same place, you can choose somewhere which has 200 square feet instead of the small area cubicle. Basically, you can work anywhere.
Jobs have company politics
If you're working for others, then you may will have different opinions on how to achieve goals with your boss. This is where the company politics started. Most of the people just ignore it and do whatever what their boss told them to do even if they know it won't work.
Some people try to negotiate with their boss, but things can be messy, this depends on what kind of person the boss is.
This never happens in your own business. You're your own boss, you can decide your own ways to achieve your goals. There're many possibilities you can do to your business without any interruption from other people.
Jobs can't pick your own job title
In most cases, you can't pick your own job title. Normally your job title is assigned, this depends on the company. You can't have your job title as "Master" in most cases.
But for your own passive income business you can have your own job title. However, you job title must be genuine. You can't have "Certified psychologist" as your job title but you don't have any certificate or license to prove you're certified. Otherwise it will become a scam or fraud case.
Jobs must work
This sounds weird, it's undoubtedly jobs must work. If you don't work, your company won't pay you any salary. The more the money you want to earn, the more the work you have to do. If you stop working, your income stream will stop immediately.
In contrast, passive income business is not necessarily to work everyday. You can stop working and your income stream still work constantly. However, don't get me wrong. Passive income doesn't mean that you can earn money without working. See also: Do you define passive income wrongly
Jobs get fired or laid off
Many people think of having a job is secure because they'll get a steady paycheck. However, in fact, it's not secure at all. You could get fired or laid off easily if you make mistakes or simply because someone higher up doesn't like you. You can't prevent to get fired or laid off because it's not in your control especially in recent economy.
Inversely, if you're doing your own business, no one will be able to get you fired or laid off. This is fully control by you. You can choose to quit the business or continue, but no one can fire you. You're at the highest place of the business.
Jobs need to be found and compete with others
If you decide to work in a company, you must compete with others to get the job. Because nowadays the marketplace is very competitive, you need to apply for the job and you probably won't be chosen. Even if you've been chosen, this doesn't mean you found a job that you like.
In other words, you have to apply many jobs at once to compete with others to get hired and the offer that you get may not the one you most wanted. Besides, after you enter the company the competition is still going on. You have to compete with others to get promotion opportunity. So then you only can increase your income. This is the cause of office politics. Therefore, you'll also have to protect yourself from being drawn into office politics.
Doing your own passive income business don't have all these problems at all. Surely that you need to compete with other competitors but you don't need to compete for get a "work". You're the boss, it's you employ others.
Jobs may be not what you like to do
Almost 80% of people don't like their work, but they insist to do the work, because they need money. Imagine that, you compete with other people very hard and get a job eventually but that job is not a job that you like at all. What feeling do you feel?
Some more you want do the work for a long time, many people trapped by the job they don't like until they retire, these people don't feel happiness in their career. If you're lucky enough you can get a job that you fully enjoy, otherwise, you want to be careful to be trapped by a job you dislike.
In contrast, passive income business model is able for you to do what you like. This kind of business model allows you to turn your hobby into a business. Therefore, you won't get bored with your job, instead you're enthusiastic about your work. So you can find happiness in your work.
Jobs don't let you know the goals
You don't know what are the goals of the company that you're working for. Sometimes you can know snippets through a company mission statement, a list of objectives, or a memo on company's board, but you'll never know the true goals of the company. Because most employees don't need to know the goals. They only need to follow boss's instructions.
Well, do your own business will allow you to set your own goals. You're clear about the goals of your business instead of working for unknown purposes. So you have clear vision and mission and you'll get motivated to execute things out. See also: 8 guideliness for effective goal setting
Jobs don't set your retirement plan
Several decades ago people still think that they can depend on their pension after retiring thus they need no worry about their retirement plan. However, nowadays the pension is utterly not enough for surviving after retirement.
Therefore, people tend to save all the money after minus the monthly expenses. However, they have to sacrifice their current lifestyle and some more it's still not enough for retirement because every month you only can save several hundreds dollars.
Inflation rate is higher than salary increase rate every year. If you're only depending on your salary, you'll not improve your lifestyle no matter how hardworking you're. This is not a good idea, say crucially this is a stupid idea. You can't set reliable retirement plan if you're only depending on the income from jobs.
In contrast, if you're earning passive income, you income is not fixed, it can increase or decrease. You can earn more money by giving more efforts to increase you passive income thus you can save more money without sacrificing your current lifestyle.
If your passive income is more than your monthly expenses, then you're financially freedom. You're able to stop working, and your income is continuously coming in. In other words, you're able to retire young and retire rich. See also: why you should retire young at 30
Nowadays, working for others is not secure at all. Many people go for it just because they think they have no other choices. They don't think they can make passive income, do their own business and retire young.
Chances are, you just need to take the first step, and you will find a way out. I wrote this article 14 benefits of passive income is intentionally to motivate you to try something else other than having an office job.
Rio Yee is the Founder of WealthyLoveLife and is super passionate about helping people change their mind and take action to improve your important areas in life such as dating & relationships, personal finance and productivity.